Compressed Air Energy Storage (CAES) is a technique employing an available off-peak energy supply and converting it to a secondary form of energy, such as compressed air, and then employing that second form of energy during periods of peak electrical energy demand to generate electricity. In one example, off-peak electrical energy from a common commercial electrical energy grid may be used to operate an air compressor to compress air and direct the compressed air to subterranean salt caverns for storage. After a period of time, the stored, compressed air may be released from the subterranean salt cavern and be utilized to generate electricity using an electrical generator driven by release of the compressed air. One drawback of using subterranean salt caverns is that the quantity of such subterranean salt caverns is limited. Another drawback of using subterranean salt caverns is that the physical locations of such subterranean salt caverns are not always proximate a commercially available electrical energy source. Thus, a need exists for a method that will permit storage of compressed air in subterranean formations that are not open-air caverns, such as subterranean rock formations of varying porosities.